First Home Purchase

13 Replies

OK...so I've been listening to Bigger Pockets Podcast for months now, researching countless strategies and obtaining mass amounts of information regarding the buy and hold branch of real estate. My main focus since January was to improve my credit score to qualify for better rates and hopefully shop around next year. Well...late last month I noticed a property listed in my area that seemed to be a perfect for my first purchase, however, I needed to secure financing in order to make a move on it. After days of doubt and self-motivational, on August 3, 2015 I finally took a leap of faith and thanks to God and the information I obtained from BP, I was able to qualify for a loan to purchase my first property. I am now in the process of getting inspections done and I am a nervous wreck. I plan to close by the end of the month and everything I learned seems to escape my brain the moment I have to sign a document or make a decision. I guess its just the fear of making a mistake along the way...but I guess I will be fine. Oh well...Wish me luck. 

@Jamir Nicholson :

 Congrats, Jamir! Best of luck in the process! You will certainly gain a lot of experience by getting started and involved. Good on you!

Stuart

Stuart Birdsong, Twin Pines Investment Group LLC | 9706726282

Thanks Stuart, I find that jumping in just might be the best for me.

Update: 

So I attended my first home inspection on August 12, 2015 and I must say "Thank God for Inspectors." I now understand the importance of having an inspection an I would never turn one down. It is money well spent in my book. On that note I have to say I was scared to LIFE!...the things that I feared seemed to come to life as we went through the home. From roof issues, to electrical, to plumbing...it had it all. Although the property had many problems I do not think that the issues went unnoticed intentionally, however, I do feel that it's a bit more than I am prepared to handle...but where do I go from here?

@Jamir Nicholson

Hey Jamir, as a soon-to-be first time home buyer as well, I appreciate your post. 

I've had these same fears as well! I've been trying to communicate with other recent first time home buyers to learn from their experiences whether good or bad.

Best of luck to you in your search and purchase!

OK....so it's been a while BP...but here's the update...

Mistake#1: Going to open house...falling in love with a property (due to anxiousness).

Mistake#2: Starting the purchase process without consulting a buyers agent.

(Side Note)

Achievement#1: Discovered I qualify for financing after a long battle with my credit score)

Mistake#3: Trusting the seller who is also an agent to be honest and fair...(will explain more later)

Achievement#2: Gaining experience and getting out of what could have been a total disaster

Achievement#3: Finding a buyers agent that could potentially be a great addition to my team(Chapter 4 of the Ultimate Beginners Guide)

Achievement#4: Finding a better property in a better neighborhood that can yield a greater return

Still in the contract phase, but wish me luck on the upcoming inspection

Originally posted by @Vincent Crane :

What are the numbers?

 I'm still new to this Vincent so hopefully you can walk me through gow to list numbers... the price of the home is 105,000 I have not gotten an inspection so I don't know if it will change...seller will cover 3500 in closing though...sorry for the noobness... am I missing anything?

Haha yes like... how many units and what are the projected rents? Does it meet the 1% or 2% rule? Like... If the house costs $100k it should rent for at least $1,000 per month. And then you'd expect the 50% rule to mean expenses (without mortgage, including property management, repairs, vacancy) would be $500 a month, so debt service of probably $400 per month, I'm not sure if it'll cash flow positively unless your rents are $1,200+ here.

Best of luck Jamir! It certainly sounds like your on the right track. One word of advice if your deal closes. If you run into maintenance needs ensure you do a lot of research on good vendors. The old adage "you get what you pay for" comes to mind. From reading the thread you seem very eager to get going, which is awesome. Just be mindful and be sure to calculate your every move. It doesn't take much to get yourself into trouble on a rental property.

Thanks for your post. Wow, there was a lot there. Everyone had great things to say. Listen, best to you in closing this deal. Let me know how it turns out...

Originally posted by @Kyle Tokasey :

@Jamir Nicholson

Hey Jamir, as a soon-to-be first time home buyer as well, I appreciate your post. 

I've had these same fears as well! I've been trying to communicate with other recent first time home buyers to learn from their experiences whether good or bad.

Best of luck to you in your search and purchase!

 Sorry so late...thanks Kyle

Hey guys sorry for the late responses but I work full time and I've been very busy lately. To clear some things up about the property...I am purchasing a home that will currently serve as my primary residence. My plan is to move on to a new property in the future and use this one as a rental...I tried to house hack but in my area it's kinda tough so I chose a different route. Many thanks to you guys for the support, and I will put up the numbers asap. I also have the inspection today so wish me luck

NEW UPDATE***

The inspection went great...I just received a CL-100 that also returned good news... and the appraisal went way better that I thought it would. As far as the numbers...I did some research and found that I should ask my agent for a CMA (Comparative Market Analysis) to further help my analysis. I'm having trouble trying to find certain information these calculations require. I do know that this property fits well regarding the 1% rule but I don't want to count on the "pro forma" data that I have. Should I be looking for additional information, or will the CMA suffice?

What I know so far:

Type: Single family home

3 br/ 2ba

1235 sq. ft.- .34 acre lot

Purchase price: $105,000

*A similar home two doors down is renting for $1,200/ mo.

Many thanks to Vincent, Justin, and Clinton for their support.

P.s. and anyone else who might be able to add anything helpful.

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